SANTA CLARA, Calif., June 15 /PRNewswire-FirstCall/ -- 8x8, Inc. (the
"Company") (Nasdaq: EGHT), announced today that a recent Securities and
Exchange Commission (SEC) speech discussing the accounting treatment of
warrants (an agreement with an investor which allows the purchase of a
certain amount of a company's stock, at a certain price, for a certain
amount of time), has led the Company to conclude that its historical
accounting for three outstanding external investor warrants from the
Company's fiscal years 2005 and 2006 must be restated to reflect the SEC's
recent discussion. These warrants were issued in connection with financing
transactions in 2004 and 2005.

The Company today filed with the SEC a current report on Form 8-K
regarding this issue, and also filed a notice of late filing of its annual
report on Form 10-K for the fiscal year ended March 31, 2007. The Company
stated in these filings that it will restate its financial statements for
fiscal years 2005 and 2006 as part of its 2007 Form 10-K filing, and will
also file amended reports on Form 10-Q for each of the first three quarters
of fiscal year 2007. The Company expects to file these restated reports
within the 15-day extension period afforded by SEC Rule 12b-25 under the
Securities Exchange Act of 1934.

"This technical accounting adjustment in our financial reports will
result in non-cash charges and do not affect the underlying business of 8x8
in any way," said 8x8 Chairman and CEO Bryan R. Martin. "While the Company
is still completing its analysis of the impact this change will have on its
historical financials, the Company has determined that the modification of
this warrant accounting will have no impact on previously reported revenue
and income from operations or net cash flows for the fiscal years ended
March 31, 2005, 2006 and 2007. The net effect of the restatement is to add
a liability to our balance sheets, and to modify our reported net loss to
reflect the change in market value of the affected warrants while they
remain outstanding." Mr. Martin concluded, "For the three fiscal years
ended March 31, 2005, 2006 and 2007, the restated results will reduce our
previously reported net loss by approximately $4M, $1M, and $4M,
respectively."

For more information regarding this change in accounting treatment,
please refer to the Company's current report on Form 8-K filed with the SEC
today.

About 8x8, Inc.
VoIP (voice over internet protocol) service provider 8x8, Inc. offers
internet-based telephony solutions (http://www.packet8.net) for individual
residential and business users as well as small to medium sized business
organizations. In addition to regular Packet8 VoIP service plans priced as
low as $24.99 per month for unlimited anytime calling to the U.S. and
Canada, 8x8 offers the Packet8 Tango Video Terminal Adapter and DV 326
VideoPhone along with accompanying monthly service plans also priced at
$24.99 per month. Packet8 Virtual Office, 8x8's VoIP phone system for small
to medium sized businesses, is a hosted PBX solution comprised of powerful
business class features. Companies subscribing to Virtual Office pay just
$49.99 per month per extension for enterprise class PBX functionality along
with unlimited local and long distance calling in the U.S. and Canada.
Packet8 Softalk™, 8x8's PC-based soft phone client, offers high quality
voice and video in-network calling as well as outbound calling to the PSTN.
For additional company information, visit 8x8's web site at
http://www.8x8.com.

Forward Looking Statements
This news release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 and Section
21E of the Securities Exchange Act of 1934. These statements include,
without limitation, information about future events based on current
expectations, potential product development efforts, near and long-term
objectives, potential new business, strategies, organization changes,
changing markets, future business performance and outlook. Such statements
are predictions only, and actual events or results could differ materially
from those made in any forward-looking statements due to a number of risks
and uncertainties. Actual results and trends may differ materially from
historical results or those projected in any such forward-looking
statements depending on a variety of factors. These factors include, but
are not limited to, customer acceptance and demand for our VoIP products
and services, the reliability of our services, the prices for our services,
customer renewal rates, customer acquisition costs, actions by our
competitors, including price reductions for their telephone services,
potential federal and state regulatory actions, compliance costs, potential
warranty claims and product defects, our needs for and the availability of
adequate working capital, our ability to innovate technologically, the
timely supply of products by our contract manufacturers, potential future
intellectual property infringement claims that could adversely affect our
business and operating results, and our ability to retain our listing on
the NASDAQ Capital Market. For a discussion of such risks and
uncertainties, which could cause actual results to differ from those
contained in the forward-looking statements, see "Risk Factors" in the
Company's reports on Forms 10-K and 10-Q, as well as other reports that
8x8, Inc. files from time to time with the Securities and Exchange
Commission. All forward-looking statements are qualified in their entirety
by this cautionary statement, and 8x8, Inc. undertakes no obligation to
update publicly any forward-looking statement for any reason, except as
required by law, even as new information becomes available or other events
occur in the future.

NOTE: 8x8, the 8x8 logo, Packet8, the Packet8 logo, Packet8 Virtual
Office, Packet8 Softalk and Packet8 Tango are trademarks of 8x8, Inc. All
other trademarks are the property of their respective owners.

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